During the currency contract period,if a devaluation happens after the contracts have been signed,
A) There is no change in quantity of traded goods.
B) The value of exports depends on which currency contracts agreed upon.
C) The value of imports depends on which currency contracts agreed upon.
D) All of a, b, and c are correct.

Question

Quizplus · Accepted Answer

If a devaluation happens after the currency contracts have been signed, there will be no change in the quantity of traded goods (A). However, the value of exports and imports will depend on which currency contracts were agreed upon. Therefore, both options B and C are correct. Hence, the best choice is D - all options are correct.

During the Currency Contract Period,if a Devaluation Happens After the Contracts